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Article
Publication date: 17 September 2020

Vanessa Pilla Galetti Bretas and Ilan Alon

The purpose of this paper is to provide an overview of the franchising sector in Brazil and highlight the opportunities and offer strategies for practitioners. It also points out…

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Abstract

Purpose

The purpose of this paper is to provide an overview of the franchising sector in Brazil and highlight the opportunities and offer strategies for practitioners. It also points out some challenges and gives suggestions to overcome them and thrive in the Brazilian market through the franchising system.

Design/methodology/approach

This paper reviews both literature and practical sources providing primary data from interviews conducted with franchising experts from the Brazilian Franchising Association and a consultant company.

Findings

International franchisors willing to enter the Brazilian market might face some challenges, such as the language barrier, the complex tax system and the need for local adaptations. Foreign entrants should consider low control entry modes as master franchising and area development agreements, with local partners that know the Brazilian culture, business system and regulations.

Originality/value

Brazil presents a great market potential for international franchisors. It counts with an established franchising system and a stable regulatory environment. This paper provides relevant information about the characteristics, opportunities and challenges to operate in the Brazilian market, offering suggestions of strategies and several possibilities to explore different regions, locations and models across the country.

Details

Journal of Business Strategy, vol. 42 no. 6
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 13 November 2018

Ilan Alon and B. Elango

The purpose of this paper is to examine the factors associated with franchisors going public using signaling theory. Listing on the stock market is a sign that the business…

Abstract

Purpose

The purpose of this paper is to examine the factors associated with franchisors going public using signaling theory. Listing on the stock market is a sign that the business concept has reached a threshold level of acceptance and success. To increase the relevance of this study to practitioners, the authors focus on franchising-specific controllable variables.

Design/methodology/approach

This study uses a sample of 2,134 franchisors from US drawn from a survey by Entrepreneur magazine during the years 2015–2016. Binominal logistic regression models are used for analysis of the data.

Findings

Findings indicate that time to franchise, international operations, franchise association affiliation, disclosure and extent of top management commitment are factors positively related to the likelihood of a franchisor being publicly listed.

Research limitations/implications

Study findings are based on a sample of franchisors from North America, where financial markets are well developed, and due caution should be exercised before generalizations are made to other contexts. A major implication of this study is that signaling theory may provide an important supplement to the already well-entrenched resource-scarcity and agency theoretic explanations in franchising research.

Originality/value

While signaling theory is growing in importance in the franchising literature, this study is the first to uncover the relationship between company signals and initial public offering.

Details

International Journal of Retail & Distribution Management, vol. 46 no. 11/12
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 18 May 2018

Alfredo Jiménez and Ilan Alon

While common sense suggests that corruption will likely have a negative impact on the economy as it raises the cost of doing business, research on the topic showed inconsistent…

Abstract

Purpose

While common sense suggests that corruption will likely have a negative impact on the economy as it raises the cost of doing business, research on the topic showed inconsistent results (positive, negative and neutral). This paper aims to verify whether corruption has a “grease” or “sand” effect on the wheels of entrepreneurial rates and under which conditions corruption will have stronger or weaker effects.

Design/methodology/approach

Using institutional theory as the basis for the hypotheses, generalized least squares estimation is conducted to empirically examine the role of corruption and political discretion in entrepreneurship in a sample of 93 countries.

Findings

Countries with higher levels of corruption are associated with lower levels of firm creation. However, this negative effect of corruption is weaker when there are higher levels of political discretion.

Originality/value

This is the first evaluation of the moderating effect of political discretion on the negative impact of corruption on entrepreneurship.

Details

Multinational Business Review, vol. 26 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 13 February 2017

Melih Madanoglu, Ilan Alon and Amir Shoham

Using munificence, real options and ambidexterity theories, the purpose of this paper is to demonstrate how the differential between home and host market environmental conditions…

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Abstract

Purpose

Using munificence, real options and ambidexterity theories, the purpose of this paper is to demonstrate how the differential between home and host market environmental conditions affects US international franchising expansion.

Design/methodology/approach

The authors used firm-level panel data for 151 US-based franchising firms, from Bond’s Guide for Franchise Opportunities, for the years 1994-2008 plus macroeconomic data on the environment, to explain the probability of franchising.

Findings

The paper finds that the differential in economic growth and economic uncertainty impacts franchisors’ desire to expand abroad on a continual basis.

Research limitations/implications

Researchers in international franchising should not only focus on host market environmental variables (pull factors), but also on conditions in the home market (push factors).

Originality/value

The paper adds to environmental explanations of international franchising by focusing on the differential in munificence and uncertainty between home and host countries.

Details

International Marketing Review, vol. 34 no. 1
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 11 November 2019

Ilan Alon and Michael Alexander Kruesi

Although China is among the most populated and fastest growing markets in the world, the reason why China’s franchising scale and scope is so limited remains an enigma. The…

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Abstract

Purpose

Although China is among the most populated and fastest growing markets in the world, the reason why China’s franchising scale and scope is so limited remains an enigma. The purpose of this paper is to shed light on franchising in China and offer strategies for practitioners to more effectively operate under a franchise model in the Chinese market.

Design/methodology/approach

This paper reviews both literature and practical sources providing some primary data from interviews conducted with franchise industry practitioners in China.

Findings

The findings of this paper are that foreign entrants to China must carefully consider if they should enter the Chinese market through franchising or if the market may be too difficult to navigate. Franchisors, whose brand is unknown in China or have operations that are too Western-centric, should probably seek international markets closer to home. Those with a high value proposition in the local market and the capabilities to adapt effectively to China’s peculiarities may, however, find a promising and profitable niche to operate in.

Originality/value

This paper focuses on the under examined realities of franchising in the Chinese market. Based on the previous experiences of franchisors in China, the paper raises seven practical strategies that practitioners can use to more successfully enter the Chinese market through franchising. Although China is among the most populated and fastest growing markets in the world, the reason why China’s franchising scale and scope is so limited remains an enigma. According to the International Franchise Association and International Trade Administration reports, China is among the top-ranking countries in terms of trade opportunities, with the top 100 franchisor sales estimated at ¥428bn (about US$66bn). China is the largest franchise market in the world, with over 4,500 franchise systems and some 400,000 franchised outlets in over 70 industries. However, considering China’s US$13.6tn (2018) economy, this is still far lower than its full potential. In addition, the scope of franchising is limited and is mostly centered in food and beverage and retail outlets, which consists of approximately 40 per cent of all franchisors.

Details

Journal of Business Strategy, vol. 41 no. 5
Type: Research Article
ISSN: 0275-6668

Keywords

Article
Publication date: 31 January 2019

Judith Jacob Iddy and Ilan Alon

This paper aims to offer a comprehensive systematic review of knowledge management (KM) in franchising literature over the past 29 years.

1970

Abstract

Purpose

This paper aims to offer a comprehensive systematic review of knowledge management (KM) in franchising literature over the past 29 years.

Design/methodology/approach

By means of bibliometric citation analysis, ISI Web of Science (WoS) database is used to analyze articles from 1990-2018. A total of 169 articles by 369 authors across 40 countries published in 113 journals from 200 institutions were clustered and examined through HistCites and VOSviewer.

Findings

The exploration of KM in franchising is associated with 3 factors: governance structure; performance outcome; and franchise network growth. The findings also reveal that KM in franchising is still an emerging discipline encompassing conflicting results which offer potential for future research.

Research limitations/implications

Identified research gaps and contradicting views in the literature offer opportunities for researchers to contribute to this research domain by empirically testing the role of absorptive capacity, replication vs adaptation strategies and new franchising formats, such as micro/social franchising.

Originality/value

This study is unique in its examination of KM in franchising. It also highlights the value of knowledge in franchise chain performance.

Details

Journal of Knowledge Management, vol. 23 no. 4
Type: Research Article
ISSN: 1367-3270

Keywords

Open Access
Article
Publication date: 17 November 2020

Ilan Alon, Indri Dwi Apriliyanti and Massiel Carolina Henríquez Parodi

This paper aims to provide a bibliometric meta-analysis of the already substantial and growing literature on international franchising. Franchising is a model for businesses to…

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Abstract

Purpose

This paper aims to provide a bibliometric meta-analysis of the already substantial and growing literature on international franchising. Franchising is a model for businesses to achieve scale with limited resources. International franchising is a mode of entry that allows firms to develop new markets with relatively little risk but also little control.

Design/methodology/approach

Using a systematic approach, the paper identifies all articles in the ISI Web of Science from 1970 to 2018 that includes the term international franchising (in the title, the abstract or keywords) and finds 131 articles. This paper used HistCite software to analyze the bibliometric data.

Findings

Four major research clusters in the international franchising literature are identified. In addition, this study shows a change in research patterns regarding topics, theories and methodologies from the 1970s through 2018. The paper presents the most influential articles, authors and journals.

Originality/value

From the analyzes, this study develops a conceptual framework of international franchising and suggest avenues for future research.

Details

Multinational Business Review, vol. 29 no. 1
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 14 September 2022

Ron Berger, Netanel Drori, Matti Rachamim and Ilan Alon

This paper aims to generalize emic studies of culture and thus provide indigenous view nuanced particularly for emerging markets.

Abstract

Purpose

This paper aims to generalize emic studies of culture and thus provide indigenous view nuanced particularly for emerging markets.

Design/methodology/approach

The authors review four local business frameworks and deconstruct each into three different constructs. The authors systematically evaluate culture specific studies, particularities of jaan pehchaan (India), guanxi (China), sviazi (Russia) and wasta (Arab countries).

Findings

Building on social networking theory, the authors synthesize an emic model for four types of large emerging markets cultures – China, Russia, India and Arab countries – and divide them according to their affective, conative and cognitive elements.

Practical implications

By knowing the impact of the constructs and how to leverage it, managers can successfully penetrate and manage these complex markets.

Originality/value

Current models of culture, such as the ones proposed by Hofstede and GLOBE, are etic in their orientation, attempting to find variations in common dimensions across different cultures. Emic approaches to studying culture are more bottom-up and are idiosyncratic to the culture.

Details

Competitiveness Review: An International Business Journal , vol. 33 no. 6
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 13 February 2024

Sachin Kumar Raut, Ilan Alon, Sudhir Rana and Sakshi Kathuria

This study aims to examine the relationship between knowledge management and career development in an era characterized by high levels of youth unemployment and a demand for…

Abstract

Purpose

This study aims to examine the relationship between knowledge management and career development in an era characterized by high levels of youth unemployment and a demand for specialized skills. Despite the increasing transition to a knowledge-based economy, there is a significant gap between young people’s skills and career readiness, necessitating an in-depth analysis of the role of knowledge management at the individual, organizational and national levels.

Design/methodology/approach

The authors conducted a qualitative study using the theory-context-characteristics-methodology approach based on a systematic literature review. The authors created an ecological framework for reflecting on knowledge management and career development, arguing for a multidisciplinary approach that invites collaboration across sectors to generate innovative and reliable solutions.

Findings

This study presents a comprehensive review of the existing literature and trends, noting the need for more focus on the interplay between knowledge management and career development. It emphasizes the need for businesses to promote the acquisition, storage, diffusion and application of knowledge and its circulation and exchange to create international business human capital.

Practical implications

The findings may help multinational corporations develop managerial training programs and recruitment strategies, given the demand for advanced knowledge-based skills in the modern workspace. The study also discusses the influences of education, experience and job skills on business managers’ performance, guiding the future recruitment of talents.

Originality/value

To the best of the authors’ knowledge, this review is among the first to assess the triadic relationship between knowledge management, career development and the global unemployment crisis. The proposed multidisciplinary approach seeks to break down existing silos, thus fostering a more comprehensive understanding of how to address these ongoing global concerns.

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 29 February 2024

Veronica Scuotto, Deniz Karagöz, Nicola Farronato and Ilan Alon

Environmental knowledge management (EKM) has been studied mainly owing to the increasing awareness of environmental issues. Such issues have generated a warning in the tourism…

Abstract

Purpose

Environmental knowledge management (EKM) has been studied mainly owing to the increasing awareness of environmental issues. Such issues have generated a warning in the tourism industry that has stimulated a new wave of research on EKM. EKM forges landscape characteristics and so destination image. In turn, EKM sounds affecting tourism destination which calls for destination personality which shows a research context less explored. From a knowledge management perspective, The present research aims to investigate on EKM to understand how it leverages tourists' and destination personality.

Design/methodology/approach

With the intent of exploring EKM, the research uses a quantitative analysis on a sample of 2,222 young Chinese tourists. In this context, EKM is linked with destination’s personality and tourists’ personalities, their satisfaction with the destination and their behavioral intentions.

Findings

By SPSS regression model, EKM and destination personality are positively linked. This positive relationship is also reflected on destination personality and destination satisfaction, behavioral intention.

Originality/value

The authors’ original contribution to the knowledge management literature extends the new wave of research on EKM. The research also proves the need to make a close collaboration between tourists, the local community and marketers. Marketers need to pay more attention to what tourists want to do and see in the place visited. In a nutshell, there is the need of enforcing and promoting EKM.

Details

Journal of Knowledge Management, vol. 28 no. 5
Type: Research Article
ISSN: 1367-3270

Keywords

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